Moderating influence of regulatory framework on the relationship between strategic leadership and financial sustainability of NGOs in Kenya
Keywords:
donor policies, financial sustainability, laws and regulations, ngos, regulatory framework, strategic leadershipAbstract
The aim of the research was to determine the moderating influence of regulatory framework on the relationship between strategic leadership and financial sustainability of NGOs in Kenya. The study was underpinned by strategic leadership theory and applied descriptive correlational research design. The study target population was 6,028 comprising active local NGOs. It utilized stratified random sampling to select 413 CEOs/ board members as respondents through self-administered questionnaire. Correlation results showed a positive and significant relationship with financial sustainability, r (393)= 0.482, p ≤ .05. However, the proportional odds assumption was violated [LR χ2(2) = 8.474, p ≤ .05]; and the model showed poor fit with the moderating variable. Hence, the study concluded that regulatory framework does not have a significant moderating effect. The study, therefore, recommends NGOs to strengthen their alliance/ council in order to champion for a favorable regulatory framework that focusses on both legislative environment and donor policies while exploring access to funding replacements.
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